The Indianapolis journal. [volume] (Indianapolis [Ind.]) 1867-1904, 1887-08-11
M'KEEN REGAINS CONTROL
0fthe Terre Haute & indianapolis Road,
and Is Reelected President.
A Statement of the Terms Made by the
Napoleonic Ives for His Surrender-He
Doesn't Lose Anything News.

NEW YORK, Aug. 10-The directors CO mmit-
lee and the creditors committee held a Joint
meeting to-day the Office Of the Cincinnati,
Hamilton g. Dayton road for the purpose of as
pertaining if possible, the exact financial condi-
lion OF the road. The committee also called
upon Messrs. Staynor g. Ives The situation of
affairs is said to be much complicated, owing to
the close relations which this road had to the
Vandalia line, com posed of the Terre Haute q
indianapolis road and it's branches. the financial
transactions of which were carried on through
the banking house of Ives & Co. member of
the committee said today that not less than two
weeks would be required to straighten out all
the accounts of all their conflicting interests,
and as Mr.. Ives was about the only person who
thoroughly acquainted with the present
complications. his assistance will be necessary
for months to come. There is one road which
Mr.. Ives did not resign the vice presidency Of
the Mineral Range railway, of Northern Michi-
gan, and to day rumor has il that one OF the
stockholders was in the city making inquiries
into the management of the road.
The investigation by the committee was con-
tnued to-day, but the work of tracing the pre-
ferred stock was suspended and attention turned
20 the affairs of the Vandalia line. Inc counsei
for the committee states that Ives Is indebted to
the road for a very large amount OF money, but
whether it is 81, GOO, 900 or not he declines to
state.
Negotiations are now going for taking up
all the Ives loans secured by Cincinnati Hanil-
ton & Dayton collateral, and one creditor. lrv-
ing A. Evans has been paid 1886, 600, and left at
once for Saratoga William Fellows, Morgan 81
Co., who carry the 81 600. 600 loan, were asked
10 compromise on their claim, but refused 9th
creditors now considering the offers made.
One of the largest creditors states that
the securities are being bought uD
by parties who both we'll
and favorably known, but their names are re-
fused. 1t is expected that all the Ives claims
will be paid in few days, but the largest cred
itors insist on payment in full. The negotia-
tions looking to the compromises the secured
loans are being conducted in the interest of un-
secured creditors. There are several creditors
who amply secured by collateral given by
Ives in response to calls for margins and these
loans the unsecured creditors have made
rangements to carry in order that the excess Of
securities will be in their own bands The full
amount of Ives's liabilities. stated the
street. is ST, 900 900. but this figure represents
the same loans in several different shapes.
The announcements that a block of stock be-
longing to Henry S. Ives would be sold at
auction drew a number of Wallstreet men to
the Real-estate Exchange to-day The stocks
represented a monetary value of 1893, 900. The
auctioneer was about Offering the stock for sale,
when he requested by party interested to
withdraw them, which was accordingly done.
The reason for the withdrawal that Ives
had made satisfactory arrangements with the
c., II. & D. people.
Some indication of fight that may have to
be made before the new Ives programme goes
into effect may be seen in this letter from a
Wali-street law firm. addressed yesterday to the
directors of the Cincinnati. Hamilton q Dayton
road. concerning one of the companies controlled
by them:
s'Dear Sir-In behalf of certain stockholders
of the Dayton Fort Wavne 81 Chicago Railroad
Company, we beg to call yonr attention to che
following facts The agreement Of consolidation
by which said company was formed provides for
issue of capital stock of the consolidated
company to the amount of $l3.375. 900 in
change for stock of the constituent companies.
1t leaves a balance of $l,625, 900 Of stock, for
the issue of which provision
is made; So far as our clients
subsequently given for the issue of any of said
balance Yet advised that tie firm of
a. s. Ives q Co have attempted and are at
tempting to secure to themselves. in some mau-
Der. the whole or a large part of the balance of
this stock. The financial irresponsibility Of
that house being matter of common notoriety.
you will readily recognize the duty which rests
upon the officers and directors of the company
to see to it that none of this stock shall be al
lowed to pass into the possession of said Ell. S.
Ives & Co.. except for the corporate purposes,
under proper authority of the board of directors.
and for the full par value thereof actually re-
ceived by the com pany and placed beyond the
control of II. s. Ives e Co. The facts all
be known to you. but that there may be no aues-
ton of your realizing the situation and the du-
ties which rest upon you, have preferred to
send you this formal notice. 1t is commonly
believed that Fl. s. Ives 81 Co. have practically
controlled the said company. and caution
you against allowing any further obligations to
be created at their dictation and for their ben
eft, and also against allowing anv of the assets
of the company to be in their possession. In
this connection would also call your atten-
ton to the fact that all of the 81 200. 600
of Dayton and Chicago bonds which were here
tofore directed to be cancelled. have, in some
manner been nut out and applied to the per-
sonal uses of H. S. Ives & Co.
SIMPSON, THATCHER & BARNUM."
This letter prepared in the interest of
New York and Boston creditors.